Business Environmental Factors: A Report on Macro and Micro Influences

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Context Of Business

Context of Business 2
Table of Contents
Introduction 3
Macro and Micro Environmental Factors affecting Business 4
Discuss the reasons why you think it important that individuals and organisations manage
responsibly, sustainably and behave ethically in relation to social, cultural, economic and
environmental issues. 6
Conclusion. 7
References 8

Context of Business 3
Introduction
This is true as well as a known fact that the change in the digital world which is becoming more
dynamic and modern has become a reason for more profit for the business. The advanced
technologies have made it possible for a person to step into the digital market and spread the
business globally with the help of this digital world. These changes can even be experienced and
people are earning profits as well. But as it is also a fact the more advancement in technologies
are also leading towards more competition and more threats to the data online as well as other
things. Taking decision are not tough but implementing them along with maintaining the
importance of the decision is quite important. To understand properly, how to successfully, how
a business can be successful or how certain decisions can be implemented properly, it is
important to understand the factors that can affect the business and can be beneficial as well.

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Micro and Macro-Environmental Factors affecting the business
Basically, a business environment has two types of environment and they are Microenvironment
and the Macro environment.
The macro-environmental factors include Political and the legal environment which means how
the politics of the country affecting the business. Ecology and the physical environment means
how the physical environment around the business is having what sort of impact on the business.
The economic environment of the country also plays an important role in the growth of the
business, so this also can leave a great impact on the business. The technologies nowadays used
has also a great influence which can either be beneficial for the business or also can harm the
business. The socio-Cultural and the psychological environment also plays a great role in the
business like how is the business culture and how it is gonna be beneficial for the business
(Crane, 2017).
In addition to this, there are certain micro-environmental factors as well which have a great
impact on the business and can be proved as either beneficial or non-beneficial for the business.
The factors that include the micro-environmental terms and can affect the business can be
competitors who are running a business and any wrong decision taken by the company or not
taking proper care of the company can lead the competitors to win. The supplier also plays an
important role and maintaining a good relationship with the suppliers can be the best thing for
maintaining business growth. The employees if will work and give their nest can be proved as
one of the best assets for the company. The shareholders are also one of the factors that can
affect the company and the business. The customers are that asset for a business who is the most
important and who needs to be taken the most care. Apart from these, the media is also one of

Context of Business 5
the important tools that can let the business reach heights if everything is done well and can also
let the business down if not done well.
These factors are supposed to be taken the most care and certain decisions are supposed to be
taken considering all these factors, these factors can play a vital role in the growth of the
business (Trevino, 2016).

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Discuss the reasons why you think it important that individuals and organisations manage
responsibly, sustainably and behave ethically in relation to social, cultural, economic and
environmental issues.
As per me, it is important for a business to manage the responsibilities, sustainability and behave
ethically in order to maintain the growth of the business. The certain decision in business might
be taken by the highest authorities the decision can only be executed with proper maintenance of
the responsibilities or the tasks that have been allocated to every individual working on the
organisation. In addition to this, the business is also supposed to maintain ethical as well as
cultural factors. They are supposed to maintain Corporate Sustainability Responsibilities. There
are certain responsibilities of every business towards the environment, culture and ethics which
are supposed to maintained by the business and those factors are discussed over here. This is true
as well as a known fact that the change in the digital world which is becoming more dynamic and
modern has become a reason for more profit for the business. The advancement if technologies
have made it possible for a person to step into the digital market and spread the business globally
with the help of this digital world. These changes can even be experienced and people are
earning profits as well. But as it is also a fact the more advancement in technologies are also
leading towards more competition and more threats to the data online as well as other things.
Therefore, to avoid such a situation that can lead to the business to go down shall be avoided and
that can be done when it will be possible for everyone in an organisation to maintain the ethical
and social factors (Pearson, 2017).
Conclusion

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This is an individual report that is based on the discussion related to all these things along with
the micro and macro environmental factors that are affecting business. In addition to this, the
business is also supposed to maintain ethical as well as cultural factors. They are supposed to
maintain Corporate Sustainability Responsibilities. There are certain responsibilities of every
business towards the environment, culture and ethics which are supposed to maintained by the
business and those factors are discussed over here. This report contains a detailed discussion of
the factors and these are cited and referenced properly.

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References
Zinovieva, C.G., Kuznetsova, M.V., Dorfman, T.V., Limarev, P.V. and Limareva, J.A., 2016.
Study of external and internal factors affecting enterprise’s stability. Advances in Systems
Science and Applications, 16(1), pp.62-71.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Van Wormer, K. and Besthorn, F., 2017. Human behavior and the social environment, macro
level: Groups, communities, and organizations. Oxford University Press.
Trevino, L.K. and Nelson, K.A., 2016. Managing business ethics: Straight talk about how to do it
right. John Wiley & Sons
Pearson, R., 2017. Business ethics as communication ethics: Public relations practice and the
idea of dialogue. In Public relations theory (pp. 111-131). Routledge.